Rupee
moves up slightly
Mumbai: The rupee gained by about 10 paise against
the dollar on Wednesday to close below 46. Last time the
rupee closed below 46 was on July 10. The rupee opened
at 46.07/08 and closed at 45.97 against the previous close
of 46.08.
Forwards:
The forward premia were slightly lower with the six-month
premium closing at 1.21 (1.23 per cent) and the 12-month
closing at 1.25 per cent (1.25 per cent). According to
the dealer, the new cap for the rupee could be 46.10 and
45.95 could be the new support level.
Bonds:
Bond prices continued its rally with a single day gain
of 75 paise on Wednesday. The total traded volume on the
order matching system was Rs8,605 crore (Rs5,400 crore).
G-secs:
The 7.59 per cent - 10 year-2016 paper opened at a
gap at Rs99.50 (7.66 per cent YTM), up from Tuesday's
close at Rs99.07 (7.73 per cent YTM). It finally ended
at Rs99.85 (7.61 per cent YTM). The 8.07 per cent-11 year-2017
paper opened at Rs102.50 (7.71 per cent) and closed at
Rs102.84 (7.66 per cent YTM), against Tuesday's Rs102.04
(7.77 per cent YTM).
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RBI
makes loans more expensive for SEZs
New Delhi: The Reserve Bank of India (RBI) has
hiked the interest rates on loans to SEZ promoters also
for units setting up shop in these zones.
In
a note to commercial banks, the RBI has told them that
"exposure
to entities for setting up SEZs or
for acquisition of units in SEZs which includes real estate
would be treated as exposure to the commercial real estate
sector with immediate effect.
Bank
lending to the commercial real estate sector attracts
a risk weight of 150 per cent which means that they have
to provide for 50 per cent more capital as compared to
normal commercial loans.
The
RBI raised risk-weights for loans to the commercial real
estate sector in July, 2005, to 125 per cent. The weights
were increased further to 150 per cent to stem the flow
of funds to pricey real estate. By adding SEZs to the
list of speculative risk-weightage, the RBI is telling
banks to go-slow on their lending to such projects.
The
SEZ policy has already kicked up a storm within government
and outside. While the commerce and finance ministries
are battling over possible tax losses, the Communist parties,
who support the government from outside, have opposed
giving so much land on ownership basis to private sector
promoters.
IMF
chief economist Raghuram Rajan has also weighed in against
the idea, saying the tax sops proposed may be unaffordable.
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Maruti
ties up with Magma Leasing for car finance
Kolkata: Maruti Udyog (MUL) has signed up with
Magma Leasing for financing of Maruti cars in all price
segments across the country.
MUL
said it is determined to motorise India in a big way by
tapping opportunities in rural and semi-urban markets,
where Magma has a significant presence.
Under
the Maruti Finance scheme, MUL has arrangements with finance
companies such as ICICI Bank, HDFC Bank, Citicorp Finance,
Kotak and Cholamandalam, and Magma was now added to that
list. MUL also has a successful stand-alone arrangement
with SBI and seven of its associate banks for car finance.
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i-flex
launches banking product
Mumbai: Software firm i-flex solutions, has launched
a new product particularly for banking transactions.
Called "i-flex process framework for banking"
(iPFB), the new product, according to the company, will
help banks tackle challenges such as improving process
efficiency while simultaneously managing operational risks.
Banks can also use iPFB to control operational risk and
integrate diverse applications into a common operating
environment. It offers both business process definitions
and corresponding executable processes, which are implemented
using the industry-standard Business Process Execution
Language.
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